NBS issues upbeat growth data for third quarter 2021

05Jan 2022
Polycarp Machira
Dar es Salaam
The Guardian
NBS issues upbeat growth data for third quarter 2021

ECONOMIC activities expanded further by 5.2 percent in the third quarter of 2021, from July to September, compared to 4.4 percent reached during the same period in 2020, the National Bureau of Statistics (NBS) said yesterday.

Daniel Masolwa,the TBS Acting Director for Economic Statistics

Daniel Masolwa, the TBS acting director for economic statistics, said a press conference here that in absolute terms, the nominal gross domestic product (GDP) increased by 37trn/- compared to 34.5trn/- the same quarter in 2020, which comes to 32.0trn/- from 30.0trn/- when adjusted for exchange rate differences for each year respectively.

During the period under review, the economy continued to gain momentum despite COVID-19 disruptions, with accommodation and food services having the highest growth at 14.3 percent on account of tourist arrivals, after contracting by 25.1 percent in the same period in 2020, he elaborated.

Tourists' arrivals for July-September last year pealed at 243, 565 arrivals, a sharp rise compared to 72,147 arrivals for the same period in 2020, he said.

The first, second and third quarters recorded 5.0 percent growth, 4.5percent and 5.2 percent growth levels respectively, the director noted, specifying that realised growth levels are quite similar to projections by the Treasury and the International Monetary Fund (IMF)

Treasury projected GDP growth of 5.0 percent in 2021 while IMF had projected GDP growth rate of 4.0 percent in 2021, showing a one percent deviation, which the director attributed to differences in assumptions and methodologies used.

Mining and quarrying registered 12.2 percent growth, arts and entertainment and household employer (12.1), electricity (10.0) while information and communication posted 9.3per cent growth levels.

On the basis of broad economic classification, tertiary activities like trade and financial services had the highest share of GDP at 42.1 percent, while primary productive activities like manufacturing had 30.0 percent contribution and agriculture (27.8 percent).

During the third quarter, all activities, according to NBS contributed to the growth of 5.2 percent with the main drivers for the growth being construction by 18.1 percent, agriculture (1.1 percent), mining and quarrying (11.4 percent), manufacturing (8.6 percent), public administration and defence (5.8percent) while trade and machinery repairs accounted for 4.0 of growth activities.

Masolwa said Tanzania is doing well in gross terms, citing evaluations in the IMF World Economic Outlook (WEO) for October 2021, where the projected growth rate for 2021 was revised downward to 5.9 percent.

Global economic growth estimates for 2022 remained unchanged at 4.9 percent due to worsening pandemic dynamics in low-income countries and supply disruptions in advanced economies, he stated.

In sub-Saharan Africa, WEO projects economic at 3.7 percent overall for 2021 while in the Southern Africa Development Community (SADC), growth was projected at 3.7 percent in 2021.

For the East Africa Community (EAC) zone, economic activity in the period July-September 2021 was expanding, ending the contraction observed in the corresponding period in 2020, the IMF report indicated.

By yesterday, three EAC member states had compiled and disseminated third quarter GDP data, the director noted, pointing out that available third quarter GDP reports for 2021 show that Rwanda’s economy expanded by 1.0 percent from negative 3.6 percent observed in the corresponding period in 2020.

Uganda’s economy expanded by 3.8 percent from a contraction of 0.8 percent for the period in 2020, he added.